The Impact Of The Financial Crisis On Bank Capital Strucutre
DOWNLOAD
Download The Impact Of The Financial Crisis On Bank Capital Strucutre PDF/ePub or read online books in Mobi eBooks. Click Download or Read Online button to get The Impact Of The Financial Crisis On Bank Capital Strucutre book now. This website allows unlimited access to, at the time of writing, more than 1.5 million titles, including hundreds of thousands of titles in various foreign languages. If the content not found or just blank you must refresh this page
The Impact Of The Financial Crisis On Bank Capital Strucutre
DOWNLOAD
Author : Adrian Schmid
language : en
Publisher: GRIN Verlag
Release Date : 2019-08-12
The Impact Of The Financial Crisis On Bank Capital Strucutre written by Adrian Schmid and has been published by GRIN Verlag this book supported file pdf, txt, epub, kindle and other format this book has been release on 2019-08-12 with Business & Economics categories.
Master's Thesis from the year 2016 in the subject Business economics - Investment and Finance, grade: 1.3, University of Frankfurt (Main) (Chair of Banking and Finance, Faculty of Economics and Business Administration), language: English, abstract: As the last global financial crisis has shown, macroeconomic shocks have huge impacts on numerous economic sectors. The distortions caused by the crisis led to world-wide declines in trade, output and employment. This paper takes special emphasis on bank leverage ratios. Our longitudinal sample ranges from 2004 to 2015, including 5,069 observations of 483 banks in the United States and Europe. Our investigations are based on a modified Gropp and Heider (2010) style linear two-way error component model that uses leverage determinants of non-financial firms to describe bank capital structure. It is investigated how bank capital structure and its determinants respond to the financial crisis. The results show that the financial crisis had strong impacts.
Understanding Financial Crises
DOWNLOAD
Author : Franklin Allen
language : en
Publisher: OUP Oxford
Release Date : 2009-04-02
Understanding Financial Crises written by Franklin Allen and has been published by OUP Oxford this book supported file pdf, txt, epub, kindle and other format this book has been release on 2009-04-02 with Business & Economics categories.
What causes a financial crisis? Can financial crises be anticipated or even avoided? What can be done to lessen their impact? Should governments and international institutions intervene? Or should financial crises be left to run their course? In the aftermath of the Asian financial crisis, many blamed international institutions, corruption, governments, and flawed macro and microeconomic policies not only for causing the crisis but also unnecessarily lengthening and deepening it. Based on ten years of research, the authors develop a theoretical approach to analyzing financial crises. Beginning with a review of the history of financial crises and providing readers with the basic economic tools needed to understand the literature, the authors construct a series of increasingly sophisticated models. Throughout, the authors guide the reader through the existing theoretical and empirical literature while also building on their own theoretical approach. The text presents the modern theory of intermediation, introduces asset markets and the causes of asset price volatility, and discusses the interaction of banks and markets. The book also deals with more specialized topics, including optimal financial regulation, bubbles, and financial contagion.
Bank Performance Risk And Firm Financing
DOWNLOAD
Author : P. Molyneux
language : en
Publisher: Springer
Release Date : 2011-07-26
Bank Performance Risk And Firm Financing written by P. Molyneux and has been published by Springer this book supported file pdf, txt, epub, kindle and other format this book has been release on 2011-07-26 with Business & Economics categories.
This text comprises a selection of papers that provide state of the art insights into bank performance, risk and firm financing post crisis that were presented at the European Association of University Teachers of Banking and Finance Conference (otherwise known as the Wolpertinger Conference) held at Bangor University, Wales, 2010.
Monetary Policy Leverage And Bank Risk Taking
DOWNLOAD
Author : Mr.Luc Laeven
language : en
Publisher: International Monetary Fund
Release Date : 2010-12-01
Monetary Policy Leverage And Bank Risk Taking written by Mr.Luc Laeven and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2010-12-01 with Business & Economics categories.
We provide a theoretical foundation for the claim that prolonged periods of easy monetary conditions increase bank risk taking. The net effect of a monetary policy change on bank monitoring (an inverse measure of risk taking) depends on the balance of three forces: interest rate pass-through, risk shifting, and leverage. When banks can adjust their capital structures, a monetary easing leads to greater leverage and lower monitoring. However, if a bank's capital structure is fixed, the balance depends on the degree of bank capitalization: when facing a policy rate cut, well capitalized banks decrease monitoring, while highly levered banks increase it. Further, the balance of these effects depends on the structure and contestability of the banking industry, and is therefore likely to vary across countries and over time.
Capital Structures And Portfolio Composition During Banking Crisis
DOWNLOAD
Author : Mr.Alberto M. Ramos
language : en
Publisher: International Monetary Fund
Release Date : 1998-08-01
Capital Structures And Portfolio Composition During Banking Crisis written by Mr.Alberto M. Ramos and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 1998-08-01 with Business & Economics categories.
This paper constructs a theoretical framework that rationalizes banks’ short- and long-run adjustment dynamics—in portfolio composition and in the capital structure—following a period of financial distress. The model captures stylized facts about banks’ behavior following a shock to the capital base—namely, the rush to liquidity and credit crunch. Bank panel data show that Argentine domestic retail banks underwent a period of adjustment of six quarters following the Mexican devaluation crisis, reducing their risk-exposure since, owing to bank capital scarcity, depositors became less prone to tolerate bank default risk. Foreign-owned banks suffered a milder shock and adjusted immediately.
Basel Iii Implications For Banks Capital Structure What Happens With Hybrid Capital Instruments
DOWNLOAD
Author : Timo Köffer
language : en
Publisher: Anchor Academic Publishing (aap_verlag)
Release Date : 2014-02-01
Basel Iii Implications For Banks Capital Structure What Happens With Hybrid Capital Instruments written by Timo Köffer and has been published by Anchor Academic Publishing (aap_verlag) this book supported file pdf, txt, epub, kindle and other format this book has been release on 2014-02-01 with Business & Economics categories.
This book attempts to answer the question of how CoCos differ from convertible bonds, and how these instruments are suitable for contributing as core capital under Basel III. The place ability of CoCos and the challenges resulting from their use are discussed in this book. Overall a comprehensive picture of the impacts resulting from the new capital definitions will be created. The Background to the introduction of Basel III is described at the beginning of the book, in addition to a presentation of the Basel III document and the new capital definitions. To create a kind of basic understanding of the functioning of convertible bonds and CoCos, hybrid capital will then be explained. In the following part of the book the design options of CoCos and different interests of investor groups are shown. Then the Commerzbank AG is analyzed by means of an analysis of how the capital components changed in Basel II through to Basel III over the last two years. The effect of Basel III on hybrid capital will be illustrated with a practical example. At the end of the book follows a short conclusion regarding the potential impact of Basel III on hybrid capital and the new capital instrument CoCos.
Bank Capital
DOWNLOAD
Author : Ouarda Merrouche
language : en
Publisher: International Monetary Fund
Release Date : 2010-12-01
Bank Capital written by Ouarda Merrouche and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2010-12-01 with Business & Economics categories.
Using a multi-country panel of banks, we study whether better capitalized banks experienced higher stock returns during the financial crisis. We differentiate among various types of capital ratios: the Basel risk-adjusted ratio; the leverage ratio; the Tier I and Tier II ratios; and the tangible equity ratio. We find several results: (i) before the crisis, differences in capital did not have much impact on stock returns; (ii) during the crisis, a stronger capital position was associated with better stock market performance, most markedly for larger banks; (iii) the relationship between stock returns and capital is stronger when capital is measured by the leverage ratio rather than the risk-adjusted capital ratio; (iv) higher quality forms of capital, such as Tier 1 capital and tangible common equity, were more relevant.
Balance Sheet Strength And Bank Lending During The Global Financial Crisis
DOWNLOAD
Author : Mr.Tümer Kapan
language : en
Publisher: International Monetary Fund
Release Date : 2013-05-08
Balance Sheet Strength And Bank Lending During The Global Financial Crisis written by Mr.Tümer Kapan and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2013-05-08 with Business & Economics categories.
We examine the role of bank balance sheet strength in the transmission of financial sector shocks to the real economy. Using data from the syndicated loan market, we exploit variation in banks’ reliance on wholesale funding and their structural liquidity positions in 2007Q2 to estimate the impact of exposure to market freezes during 2007–08 on the supply of bank credit. We find that banks with strong balance sheets were better able to maintain lending during the crisis. In particular, banks that were ex-ante more dependent on market funding and had lower structural liquidity reduced the supply of credit more than other banks. However, higher and better-quality capital mitigated this effect. Our results suggest that strong bank balance sheets are key for the recovery of credit following crises, and provide support for regulatory proposals under the Basel III framework.
The Effects Of Bank Capital On Lending
DOWNLOAD
Author :
language : en
Publisher:
Release Date : 2010
The Effects Of Bank Capital On Lending written by and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2010 with Bank capital categories.
"The effect of bank capital on lending is a critical determinant of the linkage between financial conditions and real activity, and has received especial attention in the recent financial crisis. We use panel-regression techniques following Bernanke and Lown (1991) and Hancock and Wilcox (1993, 1994) to study the lending of large bank holding companies (BHCs) and find small effects of capital on lending. We then consider the effect of capital ratios on lending using a variant of Lown and Morgan's (2006) VAR model, and again find modest effects of bank capital ratio changes on lending. These results are in marked contrast to estimates obtained using simple empirical relations between aggregate commercial-bank assets and leverage growth, which have recently been very influential in shaping forecasters' and policymakers' views regarding the effects of bank capital on loan growth. Our estimated models are then used to understand recent developments in bank lending and, in particular, to consider the role of TARP-related capital injections in affecting these developments."--Abstract.
The Real Effects Of Financial Sector Interventions During Crises
DOWNLOAD
Author : Mr.Luc Laeven
language : en
Publisher: International Monetary Fund
Release Date : 2011-03-01
The Real Effects Of Financial Sector Interventions During Crises written by Mr.Luc Laeven and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2011-03-01 with Business & Economics categories.
We collect new data to assess the importance of supply-side credit market frictions by studying the impact of financial sector recapitalization packages on the growth performance of firms in a large cross-section of 50 countries during the recent crisis. We develop an identification strategy that uses the financial crisis as a shock to credit supply and exploits exogenous variation in the degree to which firms depend on external financing for investment needs, and focus on policy interventions aimed at alleviating the bank capital crunch. We find that the growth of firms dependent on external financing is disproportionately positively affected by bank recapitalization policies, and that this effect is quantitatively important and robust to controlling for other financial sector support policies. We also find that fiscal policy disproportionately boosted growth of firms more dependent on external financing. These results provide new evidence of a quantitatively important role of credit market frictions in influencing real economic activity.